By Andrew Batt:
Before the global market crash in 2008, Dubai’s property market was booming. Lavish launch parties, celebrity guests and limitless marketing budgets were the norm; allowing real estate companies to reap the rewards and live the high life in one of the largest expat communities in the world.
Yet times changed almost overnight, with investors shying away from expensive developments and off-plan projects, towards more conservative ways to invest their money and assets.
Now all that has changed.
The United Arab Emirates is continuing to see positive economic growth, particularly due to the rise in direct foreign investment into the region, which is reported to be close to US$7.7 billion (S$9.41 billion) by The World Investment Report 2012.
Indian buyers currently hold the top position for the total number of properties bought in 2011, with Pakistani and British buyers coming a close second and third respectively, highlighting the demand for property in the Emirate state.
The Dubai Land Department echoed this sentiment, claiming that: “Increased investor confidence in Dubai properties and the growth of deals and transactions … represents positive indicators for further growth.”
“People are starting to have more confidence in the stability of the market,” said Mike Sefton, a property consultant with Knight Knox International, a company that has just launched four new projects for sale in Dubai.
He added: “At the height of the boom, properties were selling for Dhs. 4,500 (S$1,496) per sq ft, yet the same properties are now selling for Dhs.1,700 (S$565) per sq ft. That’s a fraction of the price for the same quality.”
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